Photo/ Somali Times
Somalia’s debt, owed at five billion to ($ 5.3 billion), includes the United States ($ 1 billion), Italy ($ 600 million), France ($ 484 Million), United Arab Emirates ($ 256 Million), Kuwait ($ 171 Million), Russia ($ 148 million), Saudi Arabia ($ 109 Million), Japan ($ 96 Million) and the United Kingdom ($ 81 Million).
The IMF’s interest is $ 334 million and the World Bank is $ 315 million. The African Development Bank also owns $ 102 million.
World Bank, a fund, administer, is responsible for government grants and loans in another country. World Bank’s biggest job, to do, is to secure the country where the lender is supposed to be and to give them a safe working environment. That’s where World Bank, where he gets his tea, and our interest rates come from.
In order for these governments to forgive their debt, the banks (World Bank and IMF) have to come up with a plan to get their interest rates. Debt forgiveness is preceded by the WB and the IMF’s past work in Somalia, the debt they were given to put them first.
The IMF and the World Bank, when they find their money inexplicable, are now returning to the Somali government to put more stringent conditions and other accountability in place. The formal loan repayment requirement will still take another three (3) to five (5) years at least once the IMF and World Bank, receive their fees.
In Somalia, whether debt is pardoned or not forgiven is no big deal. This is because there is a debt to the government that does not exist in the country. For example, in Somalia today, no development agreement or investment is a debt that we owe; no government can implement that development.
Debt pardons the debtors as President Mohamed Abdullahi Farmajo and PM Hassan Ali Khaire, the most vulnerable, if the Somali people, would strive to build a state of supreme rule, history and history are in the hands of the elders.
The IMF and the World Bank have entered the market, providing aid to Somalia, to support a recovering and fragile state.